Directors, and their insurers, ignore Mainzeal at their peril
*Watch the full story in the video above*
Recent multi-million dollar awards against former Prime Minister Dame Jenny Shipley and other directors of failed construction company Mainzeal have reinforced the risks concerning the potential liability of company directors when corporates collapse.
Bell Gully litigation partner Tim Smith talks to Newsroom business editor Nikki Mandow about how the advent of litigation funding makes these sorts of court cases more likely. He says the Mainzeal case is a timely reminder that directors need to exercise professional scepticism about the information they receive and get early and ongoing independent advice when potential solvency issues arise.
And he highlights the need for companies and individuals to have sufficient directors and officers liability (D&O) insurance to protect themselves if things go bad.
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